Fervo gets USD-100m loan for 1st phase of large US geothermal project

US geothermal start-up Fervo Energy has arranged a USD-100-million (EUR 90.6m) bridge loan to advance the first phase of its 400-MW Cape Station project, currently under development in southwest Utah.

Some USD 65 million of the total amount will be used to fund development costs associated with the sub-surface development of the 90-MW Cape Station Phase I, while the remaining USD 35 million will go for surface development costs.

The financing is provided by XRL-ALC LLC, an affiliate of commercial real estate finance company X-Caliber Capital Holdings LLC’s unit X-Caliber Rural Capital, the parties announced in a joint statement on Tuesday.

Located in Beaver County, about 7.5 miles (12 km) northeast of Milford, the Cape Station project is described as the largest next-generation geothermal development in the world.

The first phase of the project is expected to be completed by June 2026, while the whole power station is expected to be finalised by 2028.

“Fervo’s rapid drilling advancements, 15-year fully contracted offtake from investment grade buyers, firm transmission rights, approval of nearly all required permits, and procurement of all major electrical equipment demonstrates why Fervo is an ideal candidate for project-level debt financing,” Fervo’s CEO Tim Latimer said in the statement.

(USD 1 = EUR 0.907)

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